Insurance Companies File Lawsuit Against LA Department of Water and Power

A group of insurance companies filed a lawsuit today against the Los Angeles Department of Water and Power, seeking at least $2.5 million in reimbursement for claims paid for property damaged during the 2013 Powerhouse Fire.

Century National Insurance Co., QBE Insurance Corp. and Nautilus Insurance Co. are among the plaintiffs in the lawsuit filed in Los Angeles Superior Court. The fire damaged or destroyed 53 structures, including 23 homes, according to the complaint.

A spokesman for the City Attorneys’ Office did not immediately reply to a call for comment.

The fire started May 30, 2013, near the community of Green Valley, several miles north of Santa Clarita, when a DWP power conductor became detached from a pole in a windstorm, the suit states. The loose device hit another conductor, causing arcing that resulted in the igniting of nearby trees, brush and trees, according to the plaintiffs.

The day of the fire, two electrical faults occurred on a distribution line, the suit says. Up to eight DWP employees inspected the line after the first fault, found nothing wrong and re-energized the line for a test, according to the lawsuit.

—City News Service

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